Trying to Avoid Foreclosure? Scams to Watch

Here’s how the most common foreclosure-prevention scams work:

The desperate home owner gets a letter that says something like, “We know you’re having a hard time. We have a pipeline to your lender and can help you save your home. Call this toll-free number now.”

Home owners call the number and agree to pay $1,200 to $1,500 upfront for help with their mortgage. Nothing happens. Their home still goes into foreclosure.

Harold Kirtz, a lawyer for the Federal Trade Commission who is prosecuting these scammers, says victims are often well educated and financially savvy, but they also are “in a very vulnerable state.”

Does Countrywide Owe You Money?

Bank of America, which acquired Countrywide Financial Corp., one of the most active of the sub-prime lenders, has begun issuing checks to its borrowers who are eligible for foreclosure assistance under an agreement with attorneys general in 40 states.

Borrowers most likely to be eligible for assistance must have experienced a foreclosure, short sale, or deed-in-lieu of foreclosure after taking out a Countrywide mortgage.

Rust Consulting, a third-party administrator, is managing the program, and notifying and paying eligible customers.

Source: Reuters News, Steve Eder (07/23/2009)

Where to Get Foreclosure Help

With all the dubious assistance programs and out-right scams preying on home owners facing foreclosure, it can be difficult to find legitimate help.

Here’s a list of programs that are either operated by the U.S. government or have its seal of approval:

1. To find a counselor, contact the U.S. Department of Housing and Urban Development (HUD) at (800) 569-4287 or (877) 483-1515, or go to www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm
2.  Call (888) 995-HOPE, the Homeowner’s HOPE Hotline to reach a nonprofit, HUD-approved counselor through HOPE NOW, a cooperative effort of mortgage counselors and lenders to assist homeowners.
3.  Visit NeighborWorks America’s Web site at www.nw.org/network/home.asp

How to Make an Offer on a Foreclosure and Win

These days, it’s easier to make a low-ball offer than it used to be on a  real estate foreclosure property whether in Sandy Springs, Metro Atlanta, or any place in America, but still it’s important to be smart.  Here are some things that  would-be buyer should consider when contemplating such an offer on real estate:

READY TO BUY? REOs Expected to Flood Market

Mortgage lenders are likely to put their growing supply of repossessed homes up for sale in the months to come.

According to the Mortgage Bankers Association, 10 percent of home loans was either delinquent or in the foreclosure process at the end of September. Plus, Fannie Mae and Freddie Mac saw repossessions grow nearly 25 percent to 15,196 homes from the second quarter to the third quarter of 2008.

Lenders may have to reduce the principal balance on loans to do more than slow down the foreclosure process for many borrowers.

Source: Inman News, Matt Carter (01/26/09)

Remodel That Foreclosure to Sell!

Anyone planning to buy or invest in a foreclosure property should budget for the basic cosmetic repairs — a fresh coat of paint, new carpet and maybe some simple touches like new light fixtures.

But many foreclosure buyers and investors need to go far beyond the basic repairs to transform the property into a profitable investment — while spending as little as possible to do so.  A new survey from Lowe’s home improvement chain shows which remodeling projects cost the least and which add the most value to a home.  Click here for the Complete Story.

SELLERS, Prevent Foreclosure

ANXIOUS TO SELL?

Selling your real estate through a short sale may never be your first choice, but for some it may be your best option.  Here’s how to go about it:  Sellers: Short Sale Can Prevent Foreclosure.

Don’t Miss Sandy Springs’ Real Estate Auction

Have you been dreaming of owning an upscale townhome in the Perimeter area?  Well now is the time to own real estate in the exclusive community of the Promenade at Northplace, located in Sandy Springs directly off GA 400, off Barfield Rd. between Abernathy and Hammond Drive.  This is even better than a foreclosure because these homes have never been lived in!

These luxury townhome-styled condos, with 2-3 bedrooms, have been priced from the mid-$200,000 to the low-$400,000.  There are 3 units in the Promenade that are being auctioned starting at just $165,000.  Unlike most real estate auctions, this auction for these Promenade units does not feature a buyer’s premium and is FHA approved, which is a plus for any buyer.

BUYING FORECLOSURES – Tips in this Market

1. Be willing to drive various neighborhoods before involving a real estate agent

You will get the most benefit out of the relationship with your agent if you have already driven various communities and have pinpointed what neighborhood you desire to live or invest in.  In this market, there are thousands of foreclosures available (unfortunately for the previous owners) so one of the best ways to narrow your prospects and save your time is to determine first what neighborhood you desire to purchase in.

2. Know when not to low-ball your offer

HELP for First Time Home Buyers & Those Facing Foreclosure

More than 150 home builders, remodelers and real estate agents rallied at the state Capitol in late August to celebrate the housing legislation President Bush signed into law July 30.

“The housing stimulus legislation passed by Congress in July is an infusion of confidence that the financial markets need desperately,” said Sen. Johnny Isakson (R-Ga.), a veteran of the real estate industry.

The law includes a $7,500 tax credit for people who buy their first house by July 1, 2009.

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